Core Viewpoint - The rapid growth of the global electric vehicle (EV) industry and the dual carbon goals have made automotive lightweighting and electrification irreversible trends, with aluminum alloy precision die-casting parts becoming essential for reducing vehicle weight and enhancing efficiency in EVs [1] Company Overview - Longyuan Co., Ltd. (stock code: 920055) was established in 2006 and specializes in the R&D, production, and sales of aluminum alloy precision die-casting parts for the automotive industry, initially focusing on engine systems and later expanding into steering systems and safety components [2][3] Market Position and Growth - The penetration rate of electric vehicles has rapidly increased, and Longyuan has seized opportunities in the lightweight and electrification strategies, investing in R&D for aluminum die-casting parts like OBC enclosures and inverter housings, which are now supplied to major brands like Tesla and BYD [3][6] - Longyuan's market share for OBC enclosures in the global EV market is projected to grow from 1.40% in 2022 to 5.26% in 2024, while the EPS motor housing share in the global passenger car market is expected to rise from 5.81% to 6.64% during the same period [6] Client Relationships and Revenue Growth - Longyuan has established a strong client base, including top-tier companies like BorgWarner and Delta Group, which enhances its revenue stability and growth potential [9][11] - The company's revenue has shown consistent growth, with figures of 5.19 billion yuan in 2022, 6.99 billion yuan in 2023, and projected 8.69 billion yuan in 2024, alongside net profits increasing from 1.01 billion yuan to 1.28 billion yuan in the same timeframe [11] R&D and Innovation - Longyuan emphasizes R&D, with an average annual growth rate of 29.93% in R&D investment from 2022 to 2024, and a 2024 R&D expense ratio of 4.80% [14] - The company has developed a comprehensive patent portfolio with 52 patents, including 15 invention patents, covering key processes and products [14] Industry Trends and Future Outlook - The global automotive industry is recovering, with 2024 global vehicle production expected to reach 92.5 million units, and China leading with a projected 34.4 million units sold in 2025 [16] - The demand for aluminum die-casting parts is anticipated to grow as the industry shifts towards lightweighting to address range anxiety in EVs, with Longyuan's fundraising plans aligning with these trends [20][21]

Investment Rating - The investment rating for the company is not explicitly stated in the report, but it suggests active participation in the stock subscription due to its low initial valuation and growth potential [20]. Core Viewpoints - The company specializes in precision aluminum alloy die-casting parts, primarily used in critical automotive systems such as engine systems, new energy vehicle (NEV) power systems, steering systems, and thermal management systems. It has established a supply chain presence with over 30 domestic and international OEMs [4][7]. - The company is expected to achieve a revenue of 869 million yuan in 2024, with a three-year CAGR of +29.35%. The net profit attributable to the parent company is projected to be 128.49 million yuan, with a CAGR of +12.76% over the same period [8]. - The company plans to use the raised funds for expanding production capacity in NEV power systems and lightweight automotive components, which will significantly enhance its performance [9][20]. Summary by Sections 1. Company Overview - The company was established in 2006 and is headquartered in Ningbo, Zhejiang. It focuses on aluminum alloy precision die-casting parts for automotive applications, with a growing market share in various segments [4][7]. 2. Issuance Plan - The new share issuance will adopt a direct pricing method, with an issue price of 24.70 yuan per share. The initial issuance scale is 17 million shares, accounting for 25% of the total shares post-issuance, with an expected market capitalization of 1.68 billion yuan [11][12]. 3. Industry Situation - The NEV market in China has been experiencing rapid growth, transitioning from policy-driven to market-driven development. The demand for lightweight materials, particularly aluminum die-casting parts, is increasing due to the need for energy efficiency and reduced emissions in the automotive sector [13][14]. 4. Competitive Advantages - The company has developed a core product system focusing on small and medium-sized aluminum alloy die-casting products, supported by strong R&D capabilities and advanced manufacturing technologies [15][16]. 5. Comparable Companies - The report provides a comparison with similar companies, highlighting the company's strong growth potential and specialization in the aluminum die-casting sector [18][19]. 6. Subscription Analysis - The report recommends active participation in the stock subscription, citing the company's low initial valuation and the potential for significant growth in the NEV sector [20].

Investment Rating - The investment rating for the company is not explicitly stated in the provided content, but the analysis suggests a positive outlook for participation in the upcoming stock issuance [24]. Core Insights - The company specializes in aluminum alloy precision die-casting parts, primarily used in critical automotive applications such as engine systems and electric vehicle components. It has established a supply chain presence with over 30 domestic and international manufacturers [4][9]. - The company is expected to achieve a revenue of 869 million yuan in 2024, with a three-year CAGR of +29.35%. The projected net profit for 2024 is approximately 128.49 million yuan, with a CAGR of +12.76% [10][24]. - The company is planning to raise 420 million yuan through its IPO, with a share price set at 24.70 yuan, resulting in a PE ratio of 11.74, significantly lower than the median PE of comparable companies at 41 [14][25]. Summary by Sections 1. Company Overview - The company was founded in 2006 and is headquartered in Ningbo, Zhejiang. It focuses on aluminum alloy precision die-casting parts for automotive applications, including engine systems and electric vehicle components [4][9]. 2. Issuance Plan - The IPO will involve 17 million shares, representing 25% of the total post-issue share capital. The expected public float will be 22.5%, with no existing shares being sold [14][15]. 3. Industry Situation - The Chinese electric vehicle market is experiencing rapid growth, transitioning from policy-driven to market-driven development. This shift is significantly boosting the demand for aluminum die-casting parts in the automotive sector [16][17]. 4. Competitive Advantages - The company has developed a core product system focusing on small to medium-sized aluminum die-casting products, with a strong emphasis on R&D and production efficiency. It has also established advanced manufacturing technologies [18][19]. 5. Comparable Companies - The company is compared with several peers in the industry, showing a favorable growth trajectory and a strong focus on automotive components, with a significant portion of revenue derived from this sector [22][23]. 6. Subscription Analysis - The analysis recommends active participation in the IPO due to the company's low initial valuation and growth potential in the electric vehicle sector, supported by the planned use of raised funds for expanding production capacity [24].